Shares of SoftBank Group fell sharply on Wednesday, plunging as much as 9.17% to ¥14,710, leading losses across Asia’s technology sector. The drop marked the company’s second consecutive session of declines, coming shortly after SoftBank announced a $2 billion investment in Intel.
The fall mirrored overnight weakness on Wall Street, where U.S. technology counters tumbled following steep losses in Nvidia, a key player in artificial intelligence chips. Despite Intel shares closing 6.97% higher at $25.31, SoftBank’s move sparked investor concerns, weighing on sentiment across Asian markets.
Other Japanese tech stocks also retreated, with semiconductor giant Advantest down as much as 6.27%, while Renesas Electronics and Tokyo Electron slipped 2.46% and 0.75% respectively.
The sell-off extended beyond Japan. In Taiwan, shares of TSMC dropped 1.69%, while Foxconn fell 2.16%. Both companies maintain significant partnerships with Nvidia, including advanced chip production and AI factory projects. South Korean chipmaker SK Hynix also lost 3.33%, though Samsung Electronics bucked the trend, rising 0.75%.
In Hong Kong, the Hang Seng Tech Index fell 0.87% in early trade, with Kuaishou Technology down 4.8%, JD Health International losing 3.31%, and Horizon Robotics sliding 2.29%. Tech majors Alibaba and Xiaomi also slipped 1.44% and 1.34%, respectively.
The declines come as global investors digest reports that the U.S. government may consider taking equity stakes in semiconductor companies receiving subsidies under the CHIPS Act. The law is aimed at bolstering America’s semiconductor manufacturing and AI infrastructure, developments closely tied to Asia’s leading tech firms.
